New Washington Law Will Help Grow State’s Green Hydrogen Economy 

June, 2022 - Schwabe, Williamson & Wyatt

On June 9, 2022, Senate Bill (SB) 5910 will take full effect, providing assistance and a host of incentives to the development of green hydrogen production in Washington. The Washington legislature passed SB 5910 to take advantage of funds available under the federal Infrastructure Investment and Jobs Act, which allocates $8 billion for the development of regional clean hydrogen hubs. SB 5910 was designed to help Washington become a “national and global leader” in the production and use of renewable hydrogen (i.e., hydrogen produced using renewable resources) and green electrolytic hydrogen (i.e., hydrogen produced through splitting water molecules using a non-fossil-fuel feedstock). Among other things, SB 5910:


  • Authorizes public utility districts to produce, sell, and own and operate pipelines to supply green electrolytic hydrogen.
  • Authorizes municipalities to construct, acquire, and operate facilities for the purpose of furnishing green electrolytic hydrogen and renewable hydrogen.
  • Creates an Office of Renewable Fuels within the Washington State Department of Commerce to advance the production and use of fuels made from renewable resources.
  • Extends sales-and-use and leasehold-excise tax exemptions for green electrolytic hydrogen to exemptions already provided to renewable hydrogen.
  • Authorizes the director of the state Department of Commerce to support an application by a public-private partnership entity for funding to develop a regional clean hydrogen hub.

While green hydrogen is currently too expensive to compete against conventional sources of hydrogen and other fuels, costs to develop green hydrogen are expected to fall in the coming years and the green hydrogen market is rapidly growing. With SB 5910, the Washington legislature positions the state to be a leader in green hydrogen development and creates new opportunities to support this industry.


This article summarizes aspects of the law and does not constitute legal advice. For legal advice for your situation, you should contact an attorney.


 



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